February 8, 2016 Arizona HOA Legislation Update #3

Monday, February 08, 2016

February 8, 2016 was the final day for bill introductions dealing with HOA issues. We will continue to review and track the current HOA bills, please see the description and status updates below and click the links for more information.

Counties and municipalities are prohibited from adopting or enforcing any ordinance that penalizes tenants or landlords based on a list of specified circumstances relating to domestic violence or sexual violence. Condo associations and HOAs are prohibited from imposing on a unit owner or member a requirement to terminate or not renew a lease agreement or prohibiting the unit owner or member from renting the unit based on a list of specified circumstances relating to domestic violence or sexual violence.

Status: Passed with an amendment by the Public Safety, Military and Technology Committee and forwarded to the Rules Committee where it was declared "Proper for Consideration" and will now go to the Committee of Whole (COW), after which will go to the Senate floor for vote.

On removal of a majority of the members of a condo or HOA board of directors, the HOA is required to hold an election for the replacement of the removed directors at a separate meeting of the members, which must be held no later than 30 days after the day of the meeting at which the directors were removed. A director who is removed is ineligible to serve on the board again until after the expiration of the director's term, unless the HOA documents specifically provide for a longer period of time.

Status: Passed by Government Senate Standing Committee and forwarded to Rules Committee.

Expands the list of reasons a condo or HOA board member is required to declare a conflict of interest to include any contract, decision or other action for compensation taken by the board that would benefit any employer or employee of that member. For all circumstances where a condo or HOA board member declares a conflict of interest, the board member is prohibited from playing a part directly or indirectly in the board's deliberations or vote on that issue, instead of being permitted to vote after the declaration.

Status: Passed by Government Senate Standing Committee and forwarded to Rules Committee.

Condo and homeowners' associations (HOAs) are only authorized to impose charges for late payment of assessment after the HOA has provided notice that the assessment is overdue. The HOA is required to give the unit owner or homeowner written notice of the unit owner's option to petition for an administrative hearing on an enforcement action in the Department of Fire, Building and Life Safety. If an HOA provides for absentee ballots or ballots provided by some other form of delivery, the completed ballot and envelope and any related materials must contain the name, address and signature of the person voting, unless the HOA documents permit secret ballots, in which case only the envelope must contain that information. The ballots, envelopes and related materials must be retained and made available for unit owner or member inspection for at least one year after completion of the election.

Status: Passed by Government Senate Standing Committee and forwarded to Rules Committee.

Any person engaged in the business of management of a condo association or HOA is required to obtain a license as a community manager. The Real Estate Department is required to establish by rule a licensure procedure for community managers that must include specified instruction and a licensure test. The Dept is authorized to charge a fee for licensure and for test administration. Establishes a process for petitioning the Dept for a hearing concerning violations of statutes or community documents, and removes a similar process from the responsibilities of the Department of Fire, Building and Life Safety.

Status: Passed by Government Senate Standing Committee and Appropriations Senate Standing Committee and forwarded to the Rules Committee.